Industrial output growth that has been lately observed in Hungary appears to continue in 2014: in January, industrial output increased by 6.1 percent year-on-year, while the sector expanded by 3.1 percent month-on-month. The favourable performance has continued to be mainly driven by the vehicle manufacturing sector, but related supplier divisions also meaningfully contributed to the result.

The 6.1 percent growth of industrial output in January is the best result in three years, as this has been the highest first quarter figure recorded since January 2011.

The manufacturing industry continued to excel: the sector’s output was up by 7.8 percent, due to the fact that output increased in ten out of the altogether thirteen sub sectors. Output of the vehicle manufacturing sector soared again spectacularly, by more than 30 percent, while that of the manufacturing of food, beverages and tobacco products was 5 percent higher.

Output regarding the manufacturing of basic metals and fabricated metal products, a division of average weight, and that of chemicals and chemical products increased at an above-average rate of 9.3 percent and 13.1 percent, respectively.

In the first month of 2014, industrial exports gained 9.3 percent, while vehicle manufacturing exports, constituting one-third of total manufacturing exports, surged by more than 27 percent.

As far as regional breakdown is concerned, January data are remarkable as industrial output increased in all but one region. The largest growth, 26.5 percent, was registered in Western Transdanubia. Following the almost 15 percent increase of investment and the better-than-expected GDP figure, industrial output growth can be expected to continue in 2014.

(Ministry for National Economy)